Homeplus Temporarily Closes Hypermarket Stores Due to Funding Crisis

Homeplus, one of South Korea's largest hypermarket chains, has announced the temporary closure of its large-format stores effective Tuesday, citing an "exhaustion of operating funds." The company stated that it can no longer afford to pay for merchandise or even cover the basic operational costs required to keep the stores running.

In a statement released on Tuesday, Homeplus explained that the severe depletion of operating capital has rendered it impossible to continue normal operations. "We have reached a situation where we cannot afford even the operating expenses to maintain the stores, let alone pay for merchandise," the company said. This financial crisis has led to the decision to halt operations at its hypermarket locations.

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We have reached a situation where we cannot afford even the operating expenses to maintain the stores, let alone pay for merchandise.

However, Homeplus clarified that its mall sections, which house various independent retailers, will continue to operate. "The mall sections will continue to operate if tenants wish," the company stated, adding that "thorough safety management will be implemented to prevent accidents."

Addressing speculation about an imminent bankruptcy filing, reportedly scheduled for July 16, Homeplus indicated that a final decision regarding resuming operations would be made after observing the situation and the court's final ruling by July 20, the deadline for an immediate appeal. The company's financial woes have been a subject of concern, with reports of empty shelves in some stores circulating prior to this announcement.

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The mall sections will continue to operate if tenants wish, with thorough safety management implemented to prevent accidents.